Tax & International Structuring in the United Kingdom

Full guide · Source-checked research100% of statements checked against a source145 checked against an official source0 checked against a secondary sourceChecked 2026-10-19Not yet professionally reviewed

• The main rate of UK corporation tax is 25% for profits over £250,000 and the small profits rate is 19% for profits under £50,000, for the financial years 2025 and 2026.

  UK-resident companies and non-resident companies with a UK permanent establishment.HM Revenue & Customs · checked 2026-10-18

• Companies with profits between £50,000 and £250,000 pay the main rate reduced by marginal relief, using a standard fraction of 3/200.

  Financial years 2025 and 2026.HM Revenue & Customs · checked 2026-10-18

• Corporation tax is paid by UK limited companies and by foreign companies with a UK branch or office.

  Clubs, co-operatives and other unincorporated associations are also within scope.GOV.UK · checked 2026-10-18

• A private company must file annual accounts with Companies House within 9 months of its financial year end (first accounts within 21 months of incorporation), pay corporation tax within 9 months and 1 day of the end of its accounting period, and file its Company Tax Return within 12 months.

  Private limited companies. Different payment dates apply to large and very large companies.GOV.UK · checked 2026-10-18

• The standard VAT rate is 20%, with a 5% reduced rate and a 0% rate for items such as most food and children's clothes.

  Some supplies, such as financial and property transactions, are exempt.GOV.UK · checked 2026-10-18

• A UK-established business must register for VAT when taxable turnover for the last 12 months goes over £90,000, or when it expects to exceed £90,000 in the next 30 days.

  Registration is due within 30 days of the end of the month in which the threshold was crossed (12-month test) or by the end of the 30-day period (forward-looking test).GOV.UK · checked 2026-10-18

• A business based outside the UK must register for VAT regardless of turnover if it supplies goods or services in the UK, or expects to within 30 days.

  Non-established taxable persons. Exemption from registration is available only if all taxable supplies are zero-rated.GOV.UK · checked 2026-10-18

• Companies paying yearly interest arising in the UK must deduct income tax at the savings basic rate when making the payment.

  Income Tax Act 2007 s874; applies to payments by companies and to payments to persons whose usual place of abode is outside the UK. Treaty relief can reduce or remove the deduction, for example under the Double Taxation Treaty Passport scheme or with an HMRC direction.legislation.gov.uk · checked 2026-10-18

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